EU's Voluntary Standards for SMEs - Basic Module (VSME)

Get help with the structure and content of the basic module in the EU’s voluntary standards for non-listed SMEs.

Introduction

Practices for transitioning towards a more sustainable economy

Here, the company can briefly describe its specific practices for transitioning to a more sustainable economy.

• These practices may include initiatives to reduce negative impacts and increase positive impacts on people and the environment. Examples include improving working conditions and equal treatment, sustainability training for employees, collaboration with universities on sustainability projects, reducing water and energy consumption, pollution prevention, and improving product safety.
• Philanthropic activities, such as donations, are not included.
• This section is a text field in the reporting template for the voluntary standards found in the left menu > New Impact Report > select the template "EU's Voluntary Standards for non-listed SMEs - Basic Module."

Metrics and Calculations for Environment (E) 

Energy and CO2 Emissions

Here, you shall report on the following:

• Energy consumption (MWh): This includes the company's total energy consumption from fuel, electricity, and heat. Information is often found in your supply agreement or on invoices from your utility, electricity provider, and fuel suppliers.

  • You can use this link for a calculation example.

• Energy from fossil sources (MWh): This will be a portion of your total energy consumption, including coal, oil, and natural gas.

• Electricity consumption (MWh): If possible, break down by fossil and renewable sources. This information is often available from your utility provider.

• Scope 1 Emissions (direct CO2 emissions): Use Valified's CO2 calculator or contact Valified for access to an automatic CO2 calculator through one of our partners.

• Location-based Scope 2 Emissions (indirect CO2 emissions): Use Valified's CO2 calculator or contact Valified for access to an automatic CO2 calculator through one of our partners.

Pollution of Air, Water, and Soil

If relevant, disclose information on pollutants released into air, water, and soil, as required by law or as reported under an environmental management system. If the information is already publicly available, provide the relevant URL or link to your environmental approval in the sustainability report (Impact Report).

• • You can use this document as inspiration on how to present your pollution data.

Biodiversity

This section is only relevant for companies operating in areas particularly vulnerable to biodiversity impacts. If applicable, provide:

• The number of locations the company operates in that are particularly vulnerable to biodiversity impacts.
• The area the company operates in that is characterized as particularly vulnerable in terms of biodiversity.

In your final report (Impact Report), you can also report on:

1. total use of land;
2. total sealed area;
3. total nature-oriented area on-site; and
4. total nature-oriented area off-site.

Water

Report information on water, including:

• Water consumption: All water consumed by the company, including water from utilities, wells, recycled water, etc. This information is often available from your utility provider.

Resource use, circular economy and waste management

Here, you shall report on:

• Total waste generated
• Hazardous waste generated
• Waste prepared for recycling
• Waste reused

This information can often be found with your waste collector, such as Marius Pedersen or ABAS. For example, it may be listed on an invoice or in your service agreement.

If your company is involved in manufacturing, construction, or packaging, also provide the percentage of 1) recycled and 2) recyclable materials in your products.

You should also provide information on how you manage resource consumption, waste handling practices, and whether you apply circular economy principles. This is included as a text field in the reporting template for the voluntary standards found in the left menu > New Impact Report > select the template "EU's Voluntary Standards for SMEs - Basic Module."

Read about the three principles of the circular economy from the Ellen MacArthur Foundation here.

Metrics and Calculations for Social (S) 

Workforce

Here, you shall provide:

• Total number of employees in full-time equivalents
• Number of employees by gender: 1) women and 2) men
• Overview of employees by contract type:
  • Permanent
  • Temporary

This information is often available in your HR system.

Health and Safety

Report:

• Total number of work-related accidents (in count)
  • Work-related accidents include incidents resulting from work. Optionally, provide the number reported to the Labor Inspection via the EASY system.
• Number of fatalities from work-related accidents or diseases.

Remuneration, collective bargaining and training 

Report:

• Ratio of starting salary to minimum wage (where applicable, e.g., if collectively bargained)
• Wage gap between male and female employees (%) - automatically calculated by Valified.
  • This calculation requires the average hourly wage for men and women.
• Percentage of employees covered by collective agreements.

The goal of this section is to ensure all employees receive fair compensation.

• Average hours of training received by employees
  • and separately for 1) male and 2) female employees.

Value Chain

Here, you can specify if there is a process for identifying whether workers in the value chain, affected communities, or consumers and end-users are impacted or likely to be impacted by the company's activities (i.e., its products, services, and activities). This section covers only severe adverse impacts. If applicable, describe your process and the types of impacts, including where they occur and which groups are affected.

Metrics on Governance (G)

Corruption and Bribery

Report:

• Number of confirmed corruption cases
  • Total amount of fines.
• Number of confirmed bribery cases
  • Total amount of fines.

 

Read More

You can find EFRAG's document on the voluntary standards (draft) here.

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